Bullion traders slam duty move; gold markets shut for three days

New Delhi: Bullion traders and jewellers in the national capital today joined the ongoing stir and downed shutters for three days to protest against the Budget proposal to impose 1 percent excise duty on jewellery.

Bullion market and most of jewellery showrooms remained closed in the national capital, Chennai and some other places, Vice-President of the All India Sarafa Association, Surinder Kumar Jain said.

Jain said the association will write a letter to Finance Minister Arun Jaitley to demand a rollback.

"The proposed excise duty will lead to a drastic fall in business. This duty should be withdrawn in the larger interest of the industry and consumers," Jain said.

"The small jewellers are irked with the proposed levy of excise as they do not understand the legalities of it. Keeping in view of their demand, we have decided to shut our establishments for three days," Jain told media.

The government sought to impose an excise duty of 1 percent without input tax credit or 12 percent with input tax credit on articles of jewellery excluding silver other than studded with diamond or some other precious stone with a higher exemption and eligibility limit of Rs 6 crore and Rs 12 crore, respectively.

"Manufacturers and dealers of gold jewellery all over India are agitated against the budgetary proposal to levy excise duty on articles of jewellery," Jain added.